laws of banking pakistan)

8/8/2019 Laws of Banking Pakistan)

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Laws of banking (Pakistan)Laws of banking (Pakistan)

Banking companies Ordinance 1962 in conjunction withBanking companies Ordinance 1962 in conjunction with

companies Ordinance 1984companies Ordinance 1984 State Bank of pakistanAct1956State Bank of pakistanAct1956

Negotiable Instrument Act 1881Negotiable Instrument Act 1881

Bankers Books Evidence Act1891Bankers Books Evidence Act1891

Financial Institutional (Recovery of Financial Institutional (Recovery of finance)Ordinance2001finance)Ordinance2001

Foreign Exchange Regulation Act1947Foreign Exchange Regulation Act1947



Banking companies ordinance1962Banking companies ordinance1962

Sec.8Sec.8

Company involved in Banking businessCompany involved in Banking businessShall use Word BankShall use Word Bank

Public limited CompanyPublic limited Company

Sec.87Sec.87

Exclusive right Exclusive right--------Use of checks.Use of checks.




Sec.7Sec.7

Forms of businessForms of business----------to be engagedto be engaged

Sec.9Sec.9

Forms of businessForms of business----------not to be engagednot to be engaged

Sec.13Sec.13

SBPSBP determination of minimum paid up capitaldetermination of minimum paid up capital Sec.14Sec.14

ConditionsConditions --------before start of businessbefore start of business




Sec.15,15A,15B,15CSec.15,15A,15B,15C

Board of Directors ;Election ,Tenure.Board of Directors ;Election ,Tenure.

Sec.15BSec.15B----------06years tenure06years tenure Sec.21Sec.21

Reserve funds from gross profit Reserve funds from gross profit

Sec.22Sec.22

Certain percentage of DD &TD as reserveCertain percentage of DD &TD as reserve

Last working day of weekLast working day of week

Percentage notified by SBPPercentage notified by SBP




Sec.25Sec.25

Control over advances by SBPControl over advances by SBP

Sec.25ASec.25A

Collection of credit informationCollection of credit information

Sec.25AASec.25AA Preparation of report on cases of write off Preparation of report on cases of write off of loans, mark up, financial relief throughof loans, mark up, financial relief throughrescheduling, restructuring of loansrescheduling, restructuring of loans




Sec.26Sec.26

Authorizes SBP to prohibit Banks to accept Deposits Authorizes SBP to prohibit Banks to accept Deposits

Sec.27Sec.27

License from SBP to start Banking businessLicense from SBP to start Banking business

To cancel licenseTo cancel license----------contravening provisions of license.contravening provisions of license.

Sec.34Sec.34

Preparation of Balance Sheet and Profit &loss accountsPreparation of Balance Sheet and Profit &loss accounts

on last working day of year.on last working day of year. Sec38Sec38

Display of Balance Sheet and Profit &loss accounts .Display of Balance Sheet and Profit &loss accounts .




Sec.31Sec.31 To take over possession of deposits & articlesTo take over possession of deposits & articles

left over with banks for the period of 10 years orleft over with banks for the period of 10 years ormoremore

Sec.33ASec.33A To maintain secrecy & fidelity pertaining toTo maintain secrecy & fidelity pertaining to

affairs of customersaffairs of customers

Oath pertaining to secrecyOath pertaining to secrecy To publish annual accounts of Financial relief To publish annual accounts of Financial relief

&written off loans.&written off loans.




Sec.41,41A,41B,41C Allows SBPSec.41,41A,41B,41C Allows SBP

Directions for management Directions for management

Corrective measures; removal of Corrective measures; removal of chairman, BOD, memberschairman, BOD, members

Appointment of nominee for the period of Appointment of nominee for the period of

03 years03 years

Appeal by Banks to central BOD of SBP Appeal by Banks to central BOD of SBP




Sec40Sec40

Obligatory inspection by SBPObligatory inspection by SBP

BanksBanks ------to produce desired documentsto produce desired documents

Sec49Sec49

Imposition of fines &penalties ,winding upImposition of fines &penalties ,winding upof businessof business



Sec48Sec48

Allows mergers with the approval of SBP Allows mergers with the approval of SBP

Sec59Sec59

Prohibit voluntarily wind upProhibit voluntarily wind up

Sec60Sec60--8282

Frame work for winding upFrame work for winding up Sec82Sec82

Banking mohtasib(0mbadsman).Banking mohtasib(0mbadsman).

laws of banking pakistan)

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